(Bloomberg) -- Dutch mail carrier PostNL NV lowered its guidance for a second time this year due to rising fuel and labor costs brought on by “unprecedented” levels of inflation.
PostNL now expects to report normalized earnings before interest and tax of 145 million euros ($148 million) to 175 million euros this year.
The company, which already lowered its 2022 outlook in May, expects low single-digit volume for its parcels segment this year and an increase of around 100 million euros in organic costs.
Shares dropped as much as 7% after the guidance change, the biggest decline since May. They were trading up 1.3% at 2.637 euros apiece as of 9:21 a.m. local time.
Chief Executive Officer Herna Verhagen warned price adjustments will be necessary to tackle the increased costs. “An unprecedented high level of inflation resulted in rising fuel and labor costs and impacted our performance,” she said. “We stepped up our actions on tight cost control and are taking adaptive measures to mitigate the ongoing headwinds.”
PostNL expects roughly between 15 million euros to 20 million euros more in fuel costs than was anticipated at the beginning of the year, Chief Financial Officer Pim Berendsen said in a phone interview. Rising fuels costs are one of the factors that impacted the company’s full-year expectations, he said.
Fewer parcels were sent in the second quarter compared to the same period last year, according to earnings report. Revenue dropped 11% to 746 million euros in the second quarter and normalized earnings before interest and tax for the same period plunged 84% to 10 million euros.
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